The Onondaga County Industrial Development Agency adopted a policy Thursday that discourages organizations from asking it for money unless the funds are for projects that directly boost near-term job creation or improves the county's chances of attracting developer investment.

"There are many worthwhile projects, but we're in the business of providing economic development and jobs," said Robert Baldwin, the agency's chairman. "I think our focus should go in that area. That's not to say that there aren't a lot of other worthwhile causes out there, but I really don't want it to appear as though the agency is now soliciting (applications for) grants."

By a 5-0 vote, the agency's directors approved a policy that states that the agency "discourages the submission of unsolicited proposals for sponsorships, projects or studies unless the proposal directly affects near-term job creation or the improvement of infrastructure necessary to better position the county for capital investment."

"In these cases, the agency will evaluate such proposals based on the strength of the proposal business plan, budget, administrative structure, stakeholder support and sustainability," it went on to say.

The policy also states that the agency will fund no more than 15 percent of a project's administrative - or overhead - costs, and will not fund any of an organization's or project's annual operating costs.

The agency's main role is to issue tax-exempt bonds and grant exemptions from property taxes, sales taxes and mortgage-recording taxes as incentives for businesses to invest in Onondaga County.

It also pays for half the cost of the county's economic development office and gives grants for training programs that improve worker productivity or to help companies purchase equipment that will expand their business and create jobs. And it spends money to market Onondaga County to potential developers.

In recent weeks, however, the agency has received requests for a $200,000 subsidy of a new and improved "Orange Express" rail service to be operated by Finger Lakes Railway Corp. between Syracuse University and Armory Square during sporting and other events at the Carrier Dome; a $40,000 grant for a planned Syracuse film office; and a $20,000 grant for a study of the downtown retail market.

A previous incarnation of the Orange Express shuttle was shut down in March by its operator, the New York Susquehanna & Western Railway because of a lack of passengers. Development agency officials said they were told the new service will be promoted better and use upgraded equipment and stations.

Deb Najarro, manager of passenger service and public relations for the Geneva-based railway company, said it has not formally requested any money from the agency. It only raised the subject as part of its study to see if it would be feasible to offer the service, she said.

Baldwin said he's concerned that the development agency will not have enough money to fund its main mission if it approves all of the grants that are being sought.

The agency raises money by charging fees for issuing bonds and providing other assistance to businesses that are expanding and to organizations building public facilities.

In recent years, most of its fee revenue has come from nonprofit organizations such as hospitals, libraries, nursing homes, schools and other "public facilities" for which it has issued tax-exempt bonds to finance expansions.

But that revenue dried up at the end of 2007 when the state Legislature did not renew the authority of industrial development agencies to issue bonds for public facilities. Nonprofit groups can still go to the state Dormitory Authority for bonding.

The agency had $1.99 million in cash in its accounts at the end of its fiscal 2007, according to its annual report. But with operating expenses of nearly $400,000 a year and its main source of revenue shut off, it could quickly run through that money, said Carolyn May, interim executive director of the agency.